April Nymex natural gas prices closed at $3.06 per MMBtu on Friday, rising by 3.20%. This increase followed a shift in US weather forecasts towards cooler temperatures, which may enhance heating demand. Additionally, the expiration of the April Nymex contract likely contributed to short-covering, further pushing prices higher.
Key disruptions in global LNG supply have also influenced market dynamics. Qatar reported a 17% damage to its Ras Laffan export facility, accounting for 20% of global LNG output; repairs are expected to take 3-5 years. Meanwhile, US dry gas production reached 113.5 billion cubic feet per day (bcf/day) and demand stood at 81.8 bcf/day, both showing year-over-year increases of 5.2% and 9.4%, respectively.
Recent reports also indicate that US natural gas inventories fell by 54 bcf in the week ending March 20, outpacing expectations and suggesting a healthy supply despite rising production forecasts. Additionally, Baker Hughes reported a decline in active US gas drilling rigs to 127, slightly below February’s peak of 134.
